In the past, Joe Saluzzi has been a vocal critic of the dominant and parasitic role HFT algorithims play in today's financial markets, siphoning off profits at the expense of the "dumb money" (i.e. retail investors) while undermining the integrity and stability of exchanges. Front running, spoofing, flash crashes -- HFTs are the culprits behind them.
Saluzzi actually has some positive developments to note: namely that the obscene profits the HFTs used to make (i.e., steal) are moderating as the arms race in the industry has escalated and the players are increasingly competing with each other. Also, the SEC appears to be moving much faster now towards putting some material constraints in place.
But the unfair advantages that HFTs enjoy, as well as their threat to market stability, are still very real. If we don't continue to fight to bring them under control, we risk a vicious downdraft during the next big market crisis should the algos instantly exit in a panic.
Click the play button below to listen to Chris' interview with Joe Saluzzi (48m:16s).
from Peak Prosperity https://ift.tt/2OJ7ZiZ
